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> What do you think that companies are supposed to do with their profits? With hindsight it's clear that it would have been better for shareholders if Otellini
by fancyfredbot 3y ago
> What do you think that companies are supposed to do with their profits?
With hindsight it's clear that it would have been better for shareholders if Otellini had reinvested more profit into R&D rather than returning it to shareholders. Intel has now lost their process node advantage to TSMC. Their CPUs are not competitive on power efficiency with AMD and Apple. This is leading to smaller profits and ultimately a worse outcome for shareholders.
- concinds 3y agoRight, more R&D and more CAPEX. The question is not whether shareholders deserve any return on their investment (yes), the question is short term vs. long term focus. Same with Boeing (161% of Boeing profits given to shareholders 2013-2019, underinvestment in talent and safety).